KOSPI unfazed in upward march as Asian markets turn subdued

Graphics by AJP Song Ji-yoon
 SEOUL, January 7 (AJP) - South Korean stocks surged Wednesday while most Asian markets traded lower, as renewed foreign buying and strength in artificial intelligence-related shares propelled the benchmark to fresh highs.

In Seoul, the KOSPI rose 1.0 percent to 4,572.50 as of 11:00 a.m., extending its year-to-date rally and marking another record level. The advance followed a rotation in investor leadership, with foreign investors taking the baton from retail traders after Tuesday's rally.

The tech-heavy KOSDAQ slipped 0.8 percent to 948.40, weighed down by losses in entertainment and biotechnology stocks.

Overall market sentiment remained stable, with investors rotating among sectors rather than pulling money out of equities. Gains in defense, artificial intelligence and select industrial stocks helped offset weakness elsewhere.

Chipmakers led the advance. Samsung Electronics climbed 2.3 percent to 142,100 won ($98.10), while SK hynix jumped 3.6 percent to 752,000 won, extending gains on sustained optimism toward AI-related demand.

The rally followed remarks by Jensen Huang, chief executive of Nvidia, who highlighted accelerating demand for advanced computing and memory technologies during his keynote address at CES 2026.

Huang's comments reinforced market expectations for continued investment in AI infrastructure, supporting the medium-term demand outlook for high-bandwidth memory and advanced semiconductors produced by Korean chipmakers.

Battery and industrial shares traded mixed. LG Energy Solution fell 1.6 percent to 371,500 won, while HD Hyundai Heavy Industries rose 3.3 percent to 568,000 won on continued optimism over shipbuilding orders. Hanwha Aerospace slipped 0.7 percent to 1,015,000 won after recent strong gains.

Entertainment stocks underperformed after President Lee Jae Myung's visit to China failed to deliver progress on the long-anticipated lifting of the de facto ban on Korean concerts and entertainment activities. HYBE fell 4.2 percent to 321,500 won, while JYP Entertainment dropped 3.3 percent to 69,200 won. SM Entertainment slid 4.7 percent to 111,600 won, and YG Entertainment declined 3.9 percent to 62,900 won.

In the foreign-exchange market, the won traded narrowly at around 1,448.3 per dollar, as gains in equities were offset by lingering external uncertainties.

Elsewhere in Asia, Japanese stocks moved lower in early trade. The Nikkei 225 slipped 0.5 percent to 52,284.2, pressured by declines in financial and technology shares. Toyota Motor fell 2.6 percent to 3,344 yen ($21.30), while Mitsubishi UFJ Financial Group edged down 0.3 percent to 2,617 yen. SoftBank Group slipped 0.3 percent to 4,704 yen.

In mainland China, the Shanghai Composite edged down 0.1 percent to 4,080.4, while Hong Kong's Hang Seng Index fell 0.5 percent to 26,588.9, as investors remained cautious amid unresolved geopolitical risks.
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